Fletcher, Beshear Favor Easing Taxes On Horse Farmers

FRANKFORT, Ky. (AP) - No matter who gets the most votes inKentucky's governor's race this fall, horse farmers could be bigwinners. Both Republican Gov. Ernie Fletcher and Democratic challengerSteve Beshear said Tuesday they favor exempting horse feed andsupplies from the state sales tax. "Right now, all of agriculture except the horse industry has asales tax exemption on things like buying feed and equipment,"Beshear said during a debate. "It is time that we also give thatexemption to the horse industry." Fletcher agreed, saying "the equine industry is our largestagriculture industry" and the state needs to do its part tonurture it. Showing no signs of wear from a grueling schedule of debates,the candidates continued their tit for tat in a sometimescontentious prime-time faceoff that highlighted their differenceson a number of issues, including the state's role in curbingillegal immigration in Kentucky. While immigration is a problem nationwide, it's the federalgovernment's duty, not individual states, to enforce the lawscurrently on the books, Beshear said. "If we're going to take on enforcing the federal laws, that'sfine. Let's let the federal government give us the money so that wecan increase our staff and we can increase the number of folks weneed so that we can do just that," Beshear said during the debatebroadcast live on WLEX-TV and CWkyt-TV in Lexington and on 26 radiostations across the state. "It's time for the federal governmentto step up and do their job for a change - enforce the laws." Fletcher said illegal immigration is a "major problem" thathis administration had already started to address. If given asecond term, Fletcher said his administration would push for a lawnext year to address the problem. "We are not going to allow the state of Kentucky to be a safehaven for illegal immigrants," Fletcher said. "If the federalgovernment doesn't take care of it, then we will take care of it,and we're beginning the steps to do that." Fletcher, who has built his campaign around his opposition togambling, also criticized Beshear for supporting a proposedconstitutional amendment to legalize casinos in Kentucky. Fletcherhas raised the issue in more than 10 previous face-to-face meetingswith Beshear. Fletcher, an ordained Baptist minister, has made hisantigambling stand the central theme of his campaign, claiming thatopening the state to casinos would lead to crime, broken familiesand other social ills. However, Beshear has said opening casinos atrace tracks and in a handful of communities along the state'sborders would generate $500 million in additional tax revenues thatcould be used to improve the lives of Kentuckians. "It won't deliver the $500 million. Oh, it will on the frontend, but it's going to take it out of your economy on the backend," Fletcher said. "It's a false promise, it's fool's gold." Beshear said gambling should be considered as a form ofentertainment, similar to bingo, the lottery and pari-mutuel horseraging - which are already legal in Kentucky. "The only difference is that if we do allow limited gaming, andif the people vote it in, then we can create about $500 million inadditional tax revenue that we can then use to really move ourstate farther faster than we can otherwise," Beshear said. The decision to legalize casinos would require a constitutionalamendment that must be approved by voters in a ballot referendum.However, before such a vote could be taken, state lawmakers wouldhave to agree to put it on the ballot. Beshear, a former lieutenant governor, chided Fletcher for hisindictment last year on charges of violating state hiring laws in ascheme to reward political supporters with protected state jobs.The indictment was later dropped in a negotiated settlement withprosecutors, and the governor has since maintained that theinvestigation was politically motivated to lessen his chances ofbeing re-elected. Fletcher also claimed that Beshear profited from the bankruptcyof Kentucky Central Life Insurance Co. while hundreds of employeeslost jobs and investors lost money. Beshear's law firm, Stites & Harbison, was hired by the stateinsurance commissioner in 1993 to assist in the liquidation ofKentucky Central after it went into bankruptcy. A report, prepared by independent attorneys 12 years ago, saidBeshear's law firm had a conflict of interest and should havewithdrawn from the case. The attorneys found that Beshear was notdirectly involved, but that he had "general knowledge" of theconflict of interest that he should have turned over to formerInsurance Commissioner Donald Stephens.

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